TCL GROUP

May 2014

BGF backing prepares ground for accelerated growth at TCL

In May 2014, BGF invested £10m of growth capital in TCL Holdings Limited (“TCL”), the external property services business.

TCL is a leading provider of estate management and landscape installation, design and consultancy services to private and public sector organisations throughout the UK.

TCL operates nationwide under three separate brand names: TCL Landscapes (landscape consultancy, design and installation primarily to quoted house builders); Clean Estates (estate management services to commercial property managers and property owners) and Admiral Play (design, consultancy and installation of play facilities to house builders, schools and local authorities).

Across its three divisions, clients of TCL include the UK’s large house builders such as Barratt Homes, Persimmon Homes and Redrow Homes and managing agents such as Jones Lang LaSalle, CBRE and Savills.

Headquartered in Northampton, TCL employs approximately 400 people. The business is forecast to turnover approximately £30m in FY14 and has consistently grown its turnover and EBITDA since 2009 despite the recession. In December 2013, TCL was included in London Stock Exchange Group’s ‘1000 companies to inspire Britain’, a report intended to highlight high performing UK based SME’s.

BGF’s £10m growth capital investment will support the company’s organic and acquisition–led growth in an increasingly favourable market. Statistics show that the UK property market continues to rebound, buoyed by government backed schemes such as ‘Help to Buy’ and the need for new housing across the country. As such, all the major UK house builders are forecasting continued strong growth. TCL will also be supported by an £8.4m debt funding package being provided by Investec Growth & Acquisition Finance, who works with entrepreneurs, management teams and investors to provide finance to UK mid-market companies.

As part of the deal, BGF took a minority shareholding in TCL and Stuart Black joined the TCL Board as Chairman via an introduction from BGF’s Talent Network. Stuart is currently Executive Chairman of Lakehouse Group and former CEO of Mears Group PLC, where over a number of years he has gained a wealth of experience working in high growth, customer service focused contracting businesses. Since joining Lakehouse Group in 2008, he has overseen its growth from a £50m turnover business to £300m today.

TCL Chief Executive Simon Cashmore said:

‘We are delighted to have secured funding with long term partners to allow us to continue to build and develop TCL over forthcoming years Despite the economic headwind, TCL has performed extremely well over the last few years and is now ideally positioned to support increased demand from the UK property market."

Investment Director Mark Freer who joins the TCL board on behalf of BGF commented:

“Our investment in TCL is a great opportunity to back management to continue the company’s excellent growth story in an increasingly favourable market environment. Our funding is well suited to accelerate this through further strategic acquisitions in the sector and also through organic growth.

TCL has created a recognisable branded service offering throughout the UK and we are delighted to be partnering with them.”

Investment Manager James Syrotiuk added:

“We are delighted to be backing Simon and the team, who have grown TCL to be one of the UK market leaders in the property services sector. BGF’s capital and support will help the Company take advantage of its significant opportunity for growth.”

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